Daushui Plant No. 2 Assignment Questions: 1. Using budget data, how rnanj,r Apple iPhone 4: 5 would have to have been completed for Danshui Plant No. 2 to break even? Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead {both variable and fixed] were allocated to planned (using Eg units) production? 1iWhat was the actual (using 130.0111? units) cost per unit of production and shipping? Prepare a exible budget for l iPhone 4's and calculate exible budget variances using actual costs for August. For the month of August= calculate the following variances {assume the standard labor rate is 80.92 per hour): a. material price variance for ash memories b. material usage variance for ash memories c. labor rate variance d. labor usage {efciench variance e. overhead spending variance \"that are some strategies or decisions that 'Wentao Chen should consider in trying to solve the problems with the Apple iPhone 4 contract in the next nine months? How would these change the costs and protability of Danshui Plant No. 2 and the iPhone 4 contract? Approach this from both Danshui's and Apple's point of view. Danshui iPhone Plant #2 Excel Exhibits Exhibit 1 Standard Variable Costs for iphone 4 (U.S. Dollars) Bill of materials (per unit) Purchased chips: Flash memory (Samsung) 27 Application processor (Samsung) 10.75 Chip for phone calls (Infinion) 14.05 Gyroscope (STMicoelectronics) 2.6 8 other purchased chips 70.95 125.35 Variable supplies and tools 62.54 187.89 Labor: Assembly and packaging (per unit) 13.11 Shipping (per unit) 1.06Danshui iPhone Plant #2 Excel Exhibits Exhibit 2 Budgeted Fixed Overhead per Month Factory rent 400000 Machine depreciation 150000 Utility fee and local taxes 52000 Supervision 127000 Monthly fixed costs 729000Danshui iPhone Plant #2 Excel Exhibits Exhibit 3 August 2010 Preliminary Report on the Results of Operations (Thousands of U.S. Dollars) Monthly Budget Actual Variance Units 200,000 180,000 20,000 U Revenue (transfer from Shenzhen) $ 41,240 $ 37,476 $ 3,764 U Variable costs Materials Flash memory S 5,400 S 5,249 S 151 F Application process 2,150 1,935 215 F Chips - phone 2,810 2,529 281 F Gyroscope 20 468 52 F 8 other chips 14,190 12,643 1,547 F Variable supplies and tools 12,507 11,305 1,202 F Subtotal $ 37,577 $ 34,129 $ 3,448 F Labor Assembly and packaging 2,622 3,092 470 U Shipping 212 191 21 F Total variable costs $ 40,411 $ 37,412 $ 2,999 Fixed costs Factory rent S 400 S 400 Machine depreciation 150 150 Utility fee and taxes 52 52 Supervision 127 134 7 U Total fixed costs S 729 S 736 $ 7 U Total costs S 41,140 38,148 2,992 F Net income S 100 S (672) S 772 U